The group sold its 16,53 percent shareholding in Nampak Zimbabwe at 0,12 cents per share, resulting in cash consideration of $14,988 million. The bulk of the funds amounting to $10,132 million will go towards capital projects.

"After satisfying funding requirements for the company's planned projects, the board has resolved to distribute, by way of a once off special dividend, approximately 33 percent of the Nampak Zimbabwe's stake net disposal proceeds, to TSL shareholders," TSL said.

The diversified concern said that the dividend distribution will be carried out on a pro rata basis at the rate of 1,36 cents per TSL share.

TSL said that it had received irrevocable letters of support from shareholders controlling 70 percent of the company's issued share capital.

The share disposal will be ratified by shareholders at the company's forthcoming annual general meeting (AGM).

TSL held 39 percent of Hunyani Holdings, then jointly controlled with Nampak of South Africa.

Hunyani was subsequently merged with Carnaud Metalbox and Megapak to form Nampak Zimbabwe.

TSL's shareholding in Nampak was then exchanged for 16,53 percent in the merged entity, Nampak Zimbabwe.

"Following the loss of strategic control, TSL made a decision to exit Nampak Zimbabwe and accordingly, reclassified the 16,53 percent stake as an available for sale investment with effect from October1, 2014."

TSL said that the disposal for reinvestment and part distribution of the proceeds thereof will not negatively affect the agro-industrial and logistics firm's liquidity.

"The directors are also of the opinion that the financial resources available to the company post the proposed divestment from Nampak Zimbabwe will be adequate to meet TSL's working capital needs and liquidity requirements for the foreseeable future," TSL said.

The Company says it had a positive start to the year, recording a strong performance for the first quarter of 2018 riding on the strength of the diversity of its operations.

Chief executive Washington Matsaira said despite a challenging environment, TSL's performance in the first quarter of this year was above prior year.

Mr Matsaira said that the commencement of the tobacco selling season would have a huge impact on the group's overall performance.

This year, tobacco is projected at 200 million kilogrammes compared to 189 million kg last year, which management at TSL say would work in their favour. TSL recorded a 75 percent increase in profit after tax to $4,8 million in the full year to December 2017.

Chairperson Anthony Mandiwanza, said TSL revenues went up 7 percent to $50,6 million while operating profit grew 24 percent to $7 million. - the herald